Persistent Systems (PERSISTENT) Q2 26/27 earnings summary

Executive summary

• Q2 FY27 revenue was $487.6M, up 7.8% QoQ and 20.0% YoY, marking the 26th consecutive quarter of sequential growth.

• EBIT was ₹6,977.2M at a 15.0% margin; reported net profit was ₹3,515.14M, down from ₹4,714.70M a year earlier.

• Nagarro offer acceptance reached 94.04% of share capital, excluding treasury shares; closing remains subject to regulatory approvals.

Financial highlights

• INR revenue was ₹46,639.04M, up 30.3% YoY; constant-currency growth was 7.8% QoQ and 20.8% YoY.

• EBIT rose 19.5% YoY to ₹6,977.2M; margin was 15.0%, down 130 bps YoY.

• Operating PAT was ₹4,951.5M, up 5% YoY at a 10.6% margin; reported PAT was ₹3,515.14M, down 25.4%.

• Reported basic and diluted EPS were ₹22.42 and ₹22.22, versus ₹30.31 and ₹30.15 in Q2 FY26; operating EPS was ₹31.6.

• H1 FY27 revenue was ₹89,671.31M and net profit was ₹8,345.57M; EBIT rose 25.7% to ₹13,846.0M.

Outlook and guidance

• No formal forward-looking financial guidance; management cited a healthy pipeline and confidence in growth across segments.

• EBIT margin aspiration remains 16%-17%, described as a goal rather than formal guidance.

• Nagarro closing was expected in Q4 CY26 or Q1 CY27, subject to RBI and Austria and Spain FDI approvals.

• Combined operations are expected to be cash EPS accretive in year one, excluding ~USD 50M of one-time transaction expenses.

• Healthcare and life sciences growth is expected to resume as client-specific headwinds conclude; large-deal amortization impact is expected to ease as costs are optimized and revenue scales.